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Release Date: July 31, 2008
Release Number: 08-1036-NEW/BOS 2008-219
Contact Name: John M. Chavez
Phone Number: 617.565.2075
San Juan, Puerto Rico – The union Sindicato
de los Empleados de Equipo Pesado, Construcción y Ramas Anexas de
Puerto Rico Inc. has agreed to pay $70,986.46 in restitution to the Plan
de Bienestar de los Empleados de Equipo Pesado Construcción Ramas
Anexas de Puerto Rico Inc. under a consent judgment obtained by the U.S.
Department of Labor.
The judgment also provides that the union and plan
must re-title the car being used for plan-related activities from the
union to the plan, and orders the union to pay its share of expenses
relating to office equipment jointly used by the union and the plan. The
pension plan is based in Río Piedras, Puerto Rico, and covers unionized
heavy equipment operators in the Puerto Rico construction industry.
“The law prohibits those entrusted with employee
benefit assets from misusing those funds,” said Bradford P. Campbell,
assistant secretary of the Labor Department’s Employee Benefits
Security Administration (EBSA). “Our legal action sends a clear
message that plan fiduciaries must use funds solely for the benefit of
plan participants.”
In the lawsuit being resolved by this judgment, the
department alleged that the union violated the Employee Retirement
Income Security Act by misusing $19,162.82 in plan assets to repair and
upkeep an obsolete bulldozer in 2004, which the union accepted in
satisfaction of a $32,000 debt owed to the plan. The union also
allegedly allowed $18,000 of plan money to be used to pay strike
expenses and for services rendered to the union election committee.
In addition, the union allegedly allowed $30,213 in
plan assets to be used to purchase a copier machine for union business
and for gifts to its members, and used plan assets to purchase and
maintain two automobiles held in the union’s name. Finally, the suit
alleged that the union failed to diligently monitor and review the
actions of individuals it appointed to serve on the plan’s board of
trustees.
The judgment, entered in the U.S. District Court for
the District of Puerto, resulted from an investigation conducted by the
Miami District Office of EBSA. Employers and workers can reach EBSA
toll-free at 866.444.3272 for help with problems relating to private
sector retirement and health plans. In fiscal year 2007, EBSA achieved
monetary results of $1.5 billion related to pension, 401(k), health and
other benefits for millions of American workers and their families.
Additional information can be found at www.dol.gov/ebsa.
Chao v. Plan de Bienestar
Civil Action Number 08-1596 (FAB)
U.S. Department of Labor news releases are accessible on the
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placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and
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with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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